https://www.taxtmi.com/caselaws?id=7273 Dividend income is taxed under the deeming rule in section 16(2) of the Income-tax Act, 1922 in the year it is paid, credited, distributed, or otherwise made unconditionally available to the shareholder, not when the warrant is actually encashed. The provision prevents postponement of tax by delaying receipt, so later physical receipt does not change the statutory year of taxability. The assessee's regularly employed method of accounting under section 13 cannot override this specific rule, and prior departmental acceptance of a different year of disclosure does not alter the charge. The dividend was therefore taxable in the relevant assessment year. en-us Mon, 01 Apr 1968 00:00:00 +0530 Mon, 16 Feb 2009 18:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7273 Dividend income is taxed under the deeming rule in section 16(2) of the Income-tax Act, 1922 in the year it is paid, credited, distributed, or otherwise made unconditionally available to the shareholder, not when the warrant is actually encashed. The provision prevents postponement of tax by delaying receipt, so later physical receipt does not change the statutory year of taxability. The assessee's regularly employed method of accounting under section 13 cannot override this specific rule, and prior departmental acceptance of a different year of disclosure does not alter the charge. The dividend was therefore taxable in the relevant assessment year. Case-Laws Income Tax Mon, 01 Apr 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7273